Nigeria’s poultry sector is undergoing a major shift as many farmers now produce their own feed instead of relying on commercial manufacturers. The move is driven by rising production costs and the need to protect already thin profit margins.
Although the prices of key feed ingredients such as maize and soybeans have reportedly fallen by over 60%, feed manufacturers have only reduced their finished feed prices by about 10%. Since feed accounts for roughly 70% of total poultry production costs, this pricing gap has become a major concern for farmers.
A poultry farmer in Ogun State, Martha Adegoroye, noted that making feed on-farm has helped her cut costs significantly, saving about ₦1,500 per kilogram compared to buying processed feed. This has improved her overall profitability.
The President of the Poultry Association of Nigeria, Sunday Ezeobiora, confirmed that many farmers are adopting homemade feed as a survival strategy. He estimated that farmers could save at least 5% by producing feed themselves, helping to stabilize egg and chicken prices in the market.
However, feed manufacturers argue that price reductions are limited due to high operational costs. These include electricity, transportation, packaging, and imported additives, all of which are heavily affected by foreign exchange constraints. Industry groups estimate that energy costs alone account for about 40% of production expenses, worsened by rising diesel prices.
As more farmers shift toward self-produced feed, demand for commercial feed is reportedly slowing. A United States Department of Agriculture (USDA) report indicates that growth in demand for industrial feed is no longer rising as previously projected.
Despite this trend, some experts caution that homemade feed may not always be cheaper. Taiwo Adeoye, former president of the Animal Science Association of Nigeria, warned that many farmers fail to properly calculate production costs, which could lead to false savings.
Overall, Nigeria’s livestock sector—especially poultry—recorded weak growth in 2025 following a contraction in 2024.
Commodity.ng Insights (What This Means for Nigeria Agriculture)
1. Feed self-production is becoming a survival strategy, not just a trend
This shift signals a structural change in Nigeria’s poultry value chain. Farmers are moving backward into input production because middle-layer inefficiencies are squeezing margins.
Insight: Expect more integrated poultry farms (feed + production + sales) rather than standalone operators.
2. The real problem is not maize and soy prices—it is conversion inefficiency
Even though raw materials dropped sharply, finished feed prices barely moved. This highlights:
- High energy dependency (diesel, grid instability)
- FX pressure on additives and premixes
- Weak competition or pricing rigidity in feed manufacturing
Insight: Policy focus should move from “input prices” to “processing and energy cost efficiency.”
3. Small farmers may benefit, but only with technical knowledge
Homemade feed can reduce costs—but only if formulation is correct. Poor mixing can lead to:
- Lower weight gain in broilers
- Poor egg production in layers
- Higher long-term losses
Insight: Extension services and feed formulation training are now critical gaps in the industry.
4. Feed manufacturers may face demand compression
If adoption continues, feed companies could see:
- Reduced sales volume
- Shift toward selling premixes and concentrates instead of full feed
- Increased competition from cooperatives and mid-scale producers
Insight: Feed companies must pivot toward “input-as-a-service” models or advisory-backed feed systems.
5. Poultry inflation stability is temporary
Even though homemade feed has helped stabilize egg and chicken prices, this stability is fragile.
Insight: Any spike in maize, soybeans, or diesel will quickly transmit into poultry prices due to reduced industrial buffering.
